Moscow  - Russian Prime Minister Vladimir Putin praised on Monday the Opel takeover deal approved at the weekend to save troubled carmaker Opel, in which a Russian firm will likely begin production of Opel models.

He said that the deal, in which Canadian parts manufacturer Magna along with Russian bank Sberbank and carmaker GAZ will take over Opel, was a success for the development of the Russian car industry.

Under the terms of the deal Berlin will provide a 1.5-billion-euro (2.1-billion-dollar) bridging loan to prevent Opel from going bankrupt itself and place Opel in a trust until a final deal is signed.

Besides the bridging financing, Berlin was also expected to make available 4.5 billion euros in loan guarantees to Magna and its Russian partners.

"The Russian government is not directly involved," said Putin, "but we welcome the work of Sberbank for this purchase."

The state-owned Sberbank, which is Russia's largest financial institution, and GAZ will eventually hold 35 per cent of Opel.

Sberbank CEO German Gref said an initial memorandum of understanding would be signed between Opel, Magna and Sberbank in the coming few days.

Russia's auto industry would benefit from the technology transfer involved in the deal, as its current output is dated in comparison with Western European models. (dpa)